Overview
Tokenomics (a portmanteau of 'token' and 'economics') encompasses all the factors that affect a token's value, distribution, and utility. It is a critical aspect of project design and investor analysis.
Key Components
- Supply: Total supply, circulating supply, and maximum supply.
- Distribution: How tokens are allocated (e.g., team, investors, community, treasury).
- Utility: What the token is used for (e.g., fees, governance, staking).
- Incentives: Rewards for miners, validators, or liquidity providers.
- Burn Mechanism: Removing tokens from circulation to create deflationary pressure.